New Delhi, April 11 -- At a time when markets remain volatile, fixed deposits continue to pay stable interest rates to depositors, making them a popular investment tool among risk-averse people. FDs are largely immune to market volatility, and investors can rest assured that the FD interest rates with which they invested their money will not change even if the bank revises these rates later. FD investors continue to enjoy a fixed interest rate once they put their money in.

However, to make fixed deposits more alluring and beneficial, there are ways to maximise your gains. Most fixed deposits in India leverage the power of compounding to ensure maximum benefit.

Understanding how interest on fixed deposits is compounded helps you maximise...